Fonterra has successfully raised $US42 million ($NZ56 million) in renminbi-denominated bonds in China, with the issue heavily oversubscribed.
The 300 million bonds in renminbi, also known as yuan, will be used to expand Fonterra's marketing, advertising and production distribution from seven cities at present, to more than 15 throughout China during the next three years.
The offer opened on Friday and the issue was almost six times oversubscribed when the decision was made to close the bidding process.
It was priced at 1.1% per annum, the lowest coupon achieved yet for an international corporate issue in the CNH (Chinese yuan deliverable in Hong Kong) market, Fonterra's general manager treasury Stephan Deschamps said.
The bonds have a three-year term and mature in June 2014.